How to buy, sell and trade Aeternity (AE)

Read our beginner’s guide to buying Aeternity tokens and where to store them.

Ethereum may currently be the biggest smart contracts platform in the world of crypto, but there are plenty of other projects keen to challenge for the title. Aeternity is one of those challengers.

Launched in 2017, Aeternity aims to improve the scalability of smart contracts and decentralised applications (dapps) by moving contracts off-chain. It also relies on an oracle to provide the real-world data needed for those smart contracts and offers a native currency, Aeon (AE), which is required to access the network and run dapps.

AE is a top 100 cryptocurrency by market cap. If you’re thinking of buying any AE tokens, read on for detailed instructions on what you need to do.

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A step-by-step guide to buying Aeternity

So you’ve decided you want to buy Aeternity? Here’s what you need to do:

Compare and review the fees and features of the exchanges that list AE in one or more currency pairs. Once you've found a platform that matches your trading needs, you can sign up for an account by providing your email address and creating a secure password.

Some exchanges will also require additional personal information, such as your name, address and proof of ID, before allowing you to trade. This extra verification is needed to satisfy Know Your Customer and Anti-Money Laundering (KYC/AML) regulations.

Once your account has been set up, remember to enable 2-factor authentication for an extra layer of security.

If you want to buy AE tokens with Australian dollars, Melbourne-based exchange CoinSpot is well worth a look. To make a deposit, click on the "Deposit AUD" link from your CoinSpot account dashboard and then complete your payment via BPAY or POLi Payments. If you want to deposit cash, you can do so at a newsagent through blueshyft.

Other platforms don't accept fiat currency and only allow crypto-to-crypto exchanges. If this is the case, you'll need to own or acquire a digital currency listed in a trading pair alongside AE, such as bitcoin (BTC) or Ether (ETH). For instructions on how to obtain either of these currencies, check out our how to buy BTC and how to buy ETH guides.

You can then deposit this digital currency into your exchange account. For example, Binance users will need to click on "Funds" and select "Deposits", and then choose the coin or token they want to deposit. You can then copy the wallet address or scan the QR code needed to transfer your funds to the right place.

The final step is to navigate to the trading page on your chosen exchange, find the currency pair you want to trade and then specify how many AE you want to buy.

For example, CoinSpot users will need to click the "Buy/Sell" tab at the top of the screen, search for "Aeternity" and click on "Buy AE". You can then enter the amount of AE you want to buy or the amount of AUD you want to spend.

If you're using Binance, click the "Exchange" link and select either the "Basic" or "Advanced" trading view. Search for the pair you want to trade, such as "AE/BTC", and select a Limit, Market or Stop-Limit Order. You can then specify the amount of AE you want to buy.

Whichever platform you're using, make sure you take the time to review the full cost of your transaction before submitting.

How to sell Aeternity

To sell your Aeon holdings, the process you need to follow is similar to that outlined in step 3. Of course, you’ll need to make sure that you enter your transaction details in the “Sell” tab rather than the “Buy” section.

It’s also worth mentioning that unlike major currencies like bitcoin, which can be traded to an extensive range of coins and tokens, AE can only be exchanged for a limited number of currencies.

Which wallets can I use to hold Aeternity?

Rather than keeping your tokens on an exchange, which exposes you to a number of security risks, it’s recommended that you move your funds into a cryptocurrency wallet that lets you retain control of your private keys.

Aeternity is an ERC20 token on Ethereum, so there are plenty of good options out there to store Aeon safely. You can create a wallet at wallet.aeternity.com, use MyEtherWallet or purchase a hardware wallet like the Ledger Nano S or TREZOR.

How Aeternity works

Since the launch of Ethereum in 2015, there’s been no shortage of speculation and excitement about the potential uses for smart contract technology. However, the world’s leading smart contracts platform and second-largest cryptocurrency isn’t without its shortcomings – from a lack of scalability to working out an efficient way to integrate real-world information onto the blockchain – and it’s these problems that Aeternity aims to solve.

To improve scalability, Aeternity moves smart contracts off-chain, running them in private state channels. This minimises the amount of on-chain data and frees up network resources.

Next, it includes a decentralised oracle, the Aeternity Oracle Machine, to integrate the real-world data needed to execute smart contracts. For example, if the execution of a contract relies on the price of a specific share reaching a predetermined figure, an oracle can provide accurate, tamper-proof data about the share’s performance.

To achieve consensus, Aeternity uses a hybrid proof-of-work and proof-of-stake mechanism. Proof-of-work is used by miners to verify blocks, while proof-of-stake is used to allow AE token holders to vote on proposals and changes to the Aeternity network.

What to consider when buying Aeternity

Cryptocurrencies are complicated and speculative assets which are known for their volatility. There’s a high level of risk associated with buying any coin or token, so it’s essential that you understand and assess all the factors that could potentially influence a coin’s value.

If you’re thinking of buying any Aeon, consider the following factors first:

Supply. According to CoinMarketCap, at time of writing (June 2018), the circulating supply of Aeon was 233,020,472 AE, out of a total supply of 273,685,830 AE.

Use. AE functions in much the same way as ETH. It is needed to use the Aeternity blockchain and to pay all system fees, and all Aeternity smart contracts settle in Aeon.

ERC20. AE tokens were initially issued as ERC20 tokens on Aeternity. When the Aeternity mainnet goes live in 2018, these tokens will be exchanged for native tokens on the Aeternity blockchain.

White paper. For a detailed explanation of the tech behind Aeternity and the problems it’s designed to solve, check out the project’s white paper.

Upcoming mainnet launch. According to the project’s road map, Aeternity’s mainnet launch is scheduled for August 2018. The success (or otherwise) of the launch will be watched with interest by many in the cryptosphere, and until it’s been completed there will still be some uncertainty surrounding the project.

Competitors. The battle to be the number-one platform for smart contracts and dapps is a fierce one. Not only will Aeternity be in direct competition with Ethereum, but it will also be in competition with a host of other strong contenders such as EOS, NEO and Cardano.

There are several other factors worth considering, so do your own research before deciding whether to buy any AE.

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly
volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of
future performance. Consider your own circumstances, and obtain your own advice, before relying on this information.
You should also verify the nature of any product or service (including its legal status and relevant regulatory
requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may
have holdings in the cryptocurrencies discussed.

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Disclosure: At the time of writing the author holds ADA, IOTA and XLM.

A writer with a passion for the written word, Tim loves helping Australians compare and find the right products. When he's not chained to a computer, Tim can usually be found exploring the great outdoors.

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